Which of the Following Statements Is Not True

question 118

Multiple Choice

Which of the following statements is not true?

• A)An investor seeking global diversification with less than $200,000 to invest should invest in global mutual funds.
• B)Changes in currency exchange rate may affect the return on your investment.
• C)Today, more and more investors are investing in stocks and bonds issued by foreign firms and global mutual funds.
• D)An investor in Canada cannot purchase shares in a foreign company.
• E)Because of international accounting rules, evaluating foreign investments is more difficult than evaluating investments in Canada.

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Definitions:

Complete Portfolio

A combination of a risk-free asset and one or more risky assets, structured to meet the investor's risk-return objectives.

Risk-Free Asset

An asset which is assumed to have no risk of financial loss and typically refers to government bonds or bills.

Risky Portfolio

A risky portfolio comprises investments that have a higher degree of risk, aiming for potentially higher rewards but with an increased possibility of losses.

Arithmetic Average

The sum of a series of numbers divided by the count of that series of numbers, commonly used to calculate the mean value of datasets.